[News] TSMC Boosts Arizona Investment by US$100B, Plans 4 More Fabs for 2nm and Advanced Packaging
TSMC held its earnings call today, with its overseas expansion once again in the spotlight. Chairman and CEO C.C. Wei said the company will invest an additional US$100 billion in Arizona to support several fabs for 2nm and below processes, as well as advanced packaging. Asked how the funding will be allocated, TSMC said it plans to build four additional fabs.
As noted by Bloomberg, the new commitment brings TSMC’s total planned investment in Arizona to US$265 billion, eventually expanding its U.S. footprint to 10 fabs and two advanced packaging facilities. Citing a U.S. official, the report says the additional investment may be allocated to three logic fabs and one advanced packaging facility, depending on market conditions.
Commenting on the company’s overseas expansion, Wei said TSMC continues to expect the ramp-up of its overseas fabs to dilute gross margin by 2–3 percentage points in the early stages, widening to 3–4 percentage points as overseas operations scale over the coming years.
Asked how TSMC determines its capacity expansion plans and whether potential delays in AI data center deployments have changed its outlook, Wei said the company closely tracks the progress of AI data center construction and continues to expect AI demand to remain very strong through 2030.
TSMC Expands Capacity at Home and Abroad
While TSMC expands its Arizona investment, C.C. Wei emphasized that the company will continue to grow its footprint in Taiwan. According to TechNews, Wei said TSMC also plans to build 13 advanced process and advanced packaging facilities in Taiwan.
TSMC continues to advance its 3nm capacity expansion. According to TechNews, the company now has three 3nm fabs across Taiwan, Arizona, and Japan to support strong and sustained demand for its 3nm process over the coming years. At the same time, TSMC continues to convert part of its 5nm production capacity to 3nm, further expanding N3 capacity in Taiwan.
Meanwhile, TechNews notes that TSMC will continue expanding high-value mature-node capacity. Japan’s JASM Fab 1 is adding capacity for CMOS image sensor applications, while Germany’s ESMC fab will serve automotive and industrial demand. Wei said demand for most mature-node applications remains relatively weak, except in areas such as power management ICs (PMICs) and CMOS image sensors (CIS).
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(Photo credit: TSMC)
